Sluggish Growth, More Job Loss in 2010: El-Erian - Economy * US * News * Story

Runway Angels
The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Fashion Show.
Smartphone Guide
Here's a need-to-know guide to nine devices, based on features, price, network and platform.
Wines for the Holidays
Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES

How Much Do You Know About Green?
Green has become part of our everyday lives. Green is everywhere-- energy, clothing, food, housing, transportation. It's a big business and a global business.
The Billionaire BFF's
Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?
The Many Myths of Coca-Cola
Can you tell which statements are true, and which ones are just rumors?

SPECIAL REPORTS

Winterizing Your Portfolio
If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.
Investor's Guide to Real Estate
Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.
Alternative Investing
Stocks and bonds? Sure. But it's a big world out there for investors.

CNBC ON DIGG

Sluggish Growth, More Job Loss in 2010: El-Erian

Published: Tuesday, 6 Oct 2009 | 4:43 PM ET

Text Size

By: CNBC.com

The US economy could be facing more problems with job losses and slower growth in 2010, Pimco's Mohamed El-Erian told CNBC Tuesday.

"We think that the second half of 2009 will be turbo charged by the stimulus and there will be a hand off to the consumer and that's what you want," El-Erian said. "But it's going to be challenging. We worry that 2010 is going to have sluggish growth and high unemployment and lower valuations."

As for the run up in gold prices, El-Erian said it's not a good sign for the US economy.

"I worry when I see gold doing what it's doing and the dollar doing what it's doing," El-Erian said. "It's an indication that the world is starting to worry about the US and we have to take these signals seriously."

As for the run on corporate bonds, El-Erian said caution should be exercised. "It's been a wonderful run but most recently, money is being pushed into the sector," El-Erian said. "I would focus on high grade companies, companies that have their financials and operating leverage under control."